Cost of sales amounted to €117.7 billion in 2015, increasing by 15.7 % compared with the previous year. The rise in cost of sales was caused by higher business volumes and consequentially higher material expenses. Personnel expenses and depreciation of equipment on operating leases and of property, plant and equipment also increased. Further information on cost of sales is provided in Note 5 of the Notes to the Consolidated Financial Statements. (See table B.18)

Gross profit therefore increased by 12.8 % overall.

Due to the growth in unit sales, selling expenses increased by €0.6 billion to €12.1 billion. The main factors here were higher expenses for marketing and personnel. As a percentage of revenue, selling expenses decreased from 8.9 % to 8.1 %. (See table B.18)

General administrative expensesof €3.7 billion were above the level of the previous year (2014: €3.3 billion), mainly driven by higher IT and personnel expenses. As a percentage of revenue, general administrative expenses decreased slightly to 2.5 % (2014: 2.6 %). (See table B.18)

Other operating income increased to €2.1 billion (2014: €1.8 billion). Other operating expense decreased significantly to €0.6 billion (2014: €1.2 billion), due in particular to expenses of €0.6 billion in the previous year related to the ongoing antitrust investigations of European manufacturers of commercial vehicles by the EU Commission. Further information on the composition of other operating income and expense is provided in Note 6 of the Notes to the Consolidated Financial Statements. (See table B.18)

In 2015, our share of profit from equity-method investments decreased to €0.5 billion (2014: €0.9 billion). In 2014, Daimler lost its significant influence on Tesla, which was previously accounted for using the equity method; the subsequent remeasurement of our Tesla shares resulted in a gain of €0.7 billion in 2014. (See table B.18)

Other financial expense/income decreased from an income of €458 million to an expense of €27 million. This was primarily due to the disposal of the RRPSH shares, which resulted in a gain of €1.0 billion in 2014. (See table B.18)

The tax expense of €4.0 billion stated under income tax expenseis €1.1 billion higher than in 2014, mainly due to the improved pretax income. The effective tax rate for 2015 was 31.6 % (2014: 28.3 %). In 2014, a gain was recognized on the sale of the RRPSH shares that was largely tax free. But also expenses arose that were not tax deductible in connection with the ongoing antitrust investigations of European manufacturers of commercial vehicles by the EU Commission. Therefore, the increase in pretax income is mainly an increase in normally taxed earnings, which led to a correspondingly higher tax expense. In both years, the income tax expense was affected by additional tax benefits and expenses. The year 2015 includes tax benefits in connection with the tax assessment of previous years as well as tax expenses due to valuation allowances on deferred tax assets, while in the year 2014, gains were recognized on the reversal of valuation allowances on deferred tax assets. (See table B.18)